Anil Ambani-led Reliance Infrastructure Ltd on Wednesday announced the acquisition of Pipavav Defence and Offshore Engineering Company Ltd with management control for an estimated Rs 820 crore.

Anil Ambani-led Reliance Infrastructure Ltd on Wednesday announced the acquisition of Pipavav Defence and Offshore Engineering Company Ltd with management control for an estimated Rs 820 crore.

Hero Group and Mahindra group, too, were in the race to pick up the stake in the company.

Reliance Infrastructure, together with its wholly-owned subsidiary Reliance Defence Systems Pvt. Ltd, has agreed to acquire from the promoters of Pipavav Defence 130 million equity shares, representing approximately 18% shareholding in the company, at a price of `63 per share, the company said in a statement.

“This is a unique opportunity for Reliance Group to participate in Prime Minister Narendra Modi’s ‘Make in India’ programme for the high-growth defence sector. We are confident that our strategic investment will create long-term value for all stakeholders,” said Anil Ambani, chairman, Reliance Group.

Pursuant to the aforesaid acquisition resulting in a change in management and control of the company, Reliance Defence Systems Ltd has issued a public announcement to make a mandatory open offer to acquire 26% shares from the public shareholders of the company, for Rs 66 per share, in terms of applicable Sebi takeover regulations, the statement added. JM Financial Institutional Securities is the sole financial adviser and manager to the open offer.

Pipavav Defence is India’s first world-class integrated defence production, ship-building and offshore infrastructure company. It is the first private sector company to have received the licence and contracts to build frontline warships for the Indian Navy.

Reliance Infra will also acquire additional equity shares of the company at Rs 63 per share.

Post transaction, existing promoters of Pipavav Defence will continue to retain a minority stake in the company, together with two non-executive board seats.